You’re completely right to feel that way. As an American, it’s mind blowing to me, too. I really don’t like the fact that “hidden fees” have become normal.
The tax drives me crazy. The excuse for not displaying the total price after tax is because it’s different for each state. …yet the cash register seems to be able to handle that perfectly fine. So it can’t that hard to figure it out.
Edit: after a quick look into it, the main problem is tax in a lot of places is based on the Total amount sold, not on each item. So that could definitely be impossible to display before hand.
after a quick look into it, the main problem is tax in a lot of places is based on the Total amount sold, not on each item.
I’m actually confused, aren’t taxes a percentage? The sum of a percentage of all items should be the same as a percentage of the sum, no? Or is my brain not do math good? Can someone smarter than me explain?
Say you list a table lamp on your website at $100, tax included. Well, if you sell that table lamp to a buyer in Connecticut (where the tax rate is a flat 6.35%) then you’re required to remit $6.35 in sales tax to the state of Connecticut on that transaction.
But if you sell the same table lamp to a buyer in Aberdeen, Washington, where the sales tax rate is 9.08%, then you’d be required to remit $9.08 in sales tax to the state of Washington.
As you can see, you are cutting into your profit margin by including tax in your pricing.
Further, US customers are accustomed to paying their local sales tax rates. We’re so accustomed to paying odd amounts in sales tax that paying a flat rate might surprise us or leave us a little confused.
This is anti-consumer bullshit nonsense. All they did was hid their only real “con” behind a wall of text. “As you can see, you are cutting into your profit margin by including sales tax”
And the last paragraph is fucking stupid too. People are too used to seeing numbers, so other numbers will confuse them!
You’re completely right to feel that way. As an American, it’s mind blowing to me, too. I really don’t like the fact that “hidden fees” have become normal.
Traveling in the US it can often feel like everyone wants to scam you or take advantage of you if you don’t pay attention.
Heck, even store prices and restaurant prices aren’t the real price.
Store prices are without sales tax/VAT, and restaurants wants you to tip 20% so they can keep not paying their “employees”.
The tax drives me crazy. The excuse for not displaying the total price after tax is because it’s different for each state. …yet the cash register seems to be able to handle that perfectly fine. So it can’t that hard to figure it out.
Edit: after a quick look into it, the main problem is tax in a lot of places is based on the Total amount sold, not on each item. So that could definitely be impossible to display before hand.
I’m actually confused, aren’t taxes a percentage? The sum of a percentage of all items should be the same as a percentage of the sum, no? Or is my brain not do math good? Can someone smarter than me explain?
Hopefully someone can. Me no math good either.
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https://www.taxjar.com/blog/retail/can-retailer-include-sales-tax-in-the-price
This is anti-consumer bullshit nonsense. All they did was hid their only real “con” behind a wall of text. “As you can see, you are cutting into your profit margin by including sales tax”
And the last paragraph is fucking stupid too. People are too used to seeing numbers, so other numbers will confuse them!
100% agree